Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Alternate Symbol(s): ARESF | T.AX.UN | T.AX.PR.I

Real Estate REIT - Diversified

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. The industrial properties account for most of the portfolio, followed by the office properties and the retail properties.

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Artis Real Estate Investment Pref Shs Series E > Does this make sense?

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Post by garyreinson Oct 20, 2023 10:33pm

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Post# 35694204

Does this make sense?

Just running with the trio privitization and how it would look for them:

Industrial 954m
Office 1,542m
Retail 556m
Development Properties 215m
Cominar/Public Securities 250m
Total assets ~ $3.5billion
Total Liabilities ~ $1.64billion (47%)

Sold 950m industrial to one buyer because its the most in-demand asset class. Proceeds of $550m or 55m shares at $10 to buy out public float. -400m mortgages/debt (liabilities)

Now becomes:

Total assets ~ 2.55 billion
Total liabilities ~ 1.24 billion
Unitholders equity: 1.3 billion
New share count (sandpiper/joyce/manji/edgepoint): 50m
New NAV per share: $26 (1300/50)

Now they have a small private entity worth over $25 with 1.3b equity and can pay themselves juicy dividends as they attempt to liquidate it all over the next few years.

Disclaimer: Just paper napkin math and a theoretical scenario.